Chinese contract for Mitsubishi Heavy Industries

28 September 2007

Mitsubishi Heavy Industries (MHI) is to supply two steam turbine generators for the Sanmen nuclear power station to be built in China's Zhejiang province. The order marks the company's first major project in the Chinese market for nuclear new build. MHI is being partnered by China's Harbin group.

The order, worth a reported 60 billion yen ($520.8 million), will see MHI and the Harbin Power Equipment Co supply two 1200 MW turbines, two generators and peripheral equipment, such as condensers and pumps for use with the two Westinghouse AP1000 nuclear reactors to be built at Sanmen.

The turbines, which MHI describe as its most advanced high-performance, high-efficiency units, will be designed and manufactured at its Takasago Machinery Works. Generators will be supplied by Mitsubishi Electric Corp, while Harbin will be responsible for turbine casings, piping and "associated facilities".

MHI's press release notes that as well as 24 units of turbines for Japanese nuclear power stations, it has also received turbine orders for nuclear power plants in Mexico, Taiwan, Spain and Slovenia. The Sanmen order is its largest overseas nuclear power plant equipment order to date. MHI also signed a contract recently to manufacture, supply and service gas and steam turbines for the Russian market. According to MHI, the Sanmen contract is "very meaningful" as it marks MHI's full-scale entrance into the Chinese market for newly built nuclear power plants.

Electricity demand in China is growing very rapidly. Mainland China has nine nuclear power reactors in commercial operation, two further units connected to the grid, four under construction, and at least four due to start construction soon. The country has ambitious plans for additional reactors, including some of the world's most advanced. The two Sanmen units are expected to start up in 2013 and 2014.